Michael & Co The Predetermined Overhead Rate Based on Units Produced Is: (Round

question 42

Multiple Choice

Michael & Co. expects overhead costs of $60,000 per month and direct production costs of $24 per unit. The estimated production activity for the current accounting period is as follows: $$\begin{array} { | l | c | c | c | c | } \hline& 1 ^ { \text {st } } \text { Quarter } & 2 ^ { \text {nd } } \text { Quarter } & \mathbf { 3 } ^ { \text {rd } } \text { Quarter } & 4 ^ { \text {th } } \text { Quarter } \\\hline \text { Units produced } & 11,500 & 5,000 & 8,250 & 11,250 \\\hline\end{array}$$ The predetermined overhead rate based on units produced is: (Round the answer to 2 decimal places.)

• A) $1.50 per unit.
• B) $2.67 per unit.
• C) $18.00 per unit.
• D) $42.00 per unit.

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